Week 5 Capital Components 1 - retained earnings accumulate...

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Internal equity is a term used to describe the cost of retained earnings. The cost of retained earnings is what is left of a company’s earning over expenditures. This amount includes taxes and dividends that are reinvested in the company. The cost of retained earnings is the yield that
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Unformatted text preview: retained earnings accumulate once they are reinvested. There is a tax advantage to having internal equity. Sources: http://www.teachmefinance.com/Scientific_Terms/Cost_of_retained_earnings.html...
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This note was uploaded on 03/26/2012 for the course F1515 F1515 taught by Professor Stan during the Spring '10 term at Keller Graduate School of Management.

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